Underweight on consumers; bet on Britannia, Marico: CIMB

Written By Unknown on Senin, 03 November 2014 | 10.54

Varun Lohchab, Regional Head of Consumer, CIMB Equities is not enthused by the volume growth reported in Q2 results by Emami. He finds the valuations of the stock expensive.

Varun Lohchab, Regional Head of Consumer, CIMB Equities is underweight on the Indian consumer sector. In an interview to CNBC-TV18 he said that the consumption space will take some time to bounce back and an uptick will only happen in FY16.

He further added that festive season demand has been not great and there has been no material pick-up. Lohchab is not surprised by the slowdown in earnings reported by companies in this sector.

On specific stocks, CIMB maintains a reduce rating on  GCPL since risk- reward is not favourable. It recommends buying  Jubilant Foodworks on every dip as a recovery expected n FY16. However, it has downgraded watch-to-jewellry maker  Titan to hold.

Lohchab's preferred picks in consumer space remain  Britannia and Marico .

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